Savings Tips from Seattle Mortgage Brokers

Saving For A Down Payment Can Be Tough…..

So you’re wanting to possibly try and buy a home in the near future, but need to start saving and don’t know what to cut back on? Here’s 17 unique and creative ways to help save some money!

1. Live below your means and sacrifice buying coffee at your favorite shop. Your daily pumpkin spice latte can add up!
2. Know where your money is going and what the majority it is being spent on by using an excel sheet to help you adjust your spending habits to better fit your budget. Spend money on needs, not wants.
3. Use cash instead of swiping a card. Set cash limits for yourself aside from bill payments and stick to cash-only for a few weeks. Set limits by taking out only a select amount a week, maybe something like $20-$40.
4. See if you can have your employer match your own 401(k) contributions and set aside 10%-15% of your income in a retirement account to make sure you have enough when you actually retire.
5. Have your savings account deduct a small part of your income automatically so it goes into your saving account without you really noticing.
6. Signing up for loyalty store cards and use the perks of receiving coupons and discounts for products you already regularly buy.
7. Save a small portion of the extra/ bonus cash you receive throughout the year. Whether its your tax returns, bonuses from work, tips etc. Putting this extra money in your savings account will help ensure you not spending it on unnecessary items.
8. This is a really good tip (as I’m guilty of it myself): Use the 24 hour rule and wait at least 24 hours before purchasing expensive items. This will help prevent you from impulse purchases you can’t afford or don’t need (at 3:00 AM in my case….).
9. Value your time! When contemplating making a purchase, calculate the cost of the item by hours you worked. If something costs $70, and you only make $10 an hour, is the item worth the seven hours of life you gave up for it?
10. Unsubscribe from emails from online shopping sites when you don’t have funds to splurge with.
11. Write a little reminder on your card saying something like, “Is this worth it?” or “Do I need this?” This message will remind you to think critically before making a purchase.
12. Look into possibly refinancing options on any of your loans to lower your interest rate to save money over time. By refinancing, you’ll also have the possibility of collecting home equity quicker.
13. Adjust your water heater’s thermostat to 120 degrees or less to save money and energy on your electric bill. Be sure to talk to your landlord or know what you’re doing on this one.
14. Cut the chord!! Cancel your cable TV services and invest in Netflix, Hulu or other streaming network to save from paying a bigger fee for cable TV when you can get the same shows on those streaming sites.
15. Remove your credit card numbers on online accounts. Some charges will auto-deduct and you may have forgotten about them.
16. Write a grocery list and stick to the items on it to stray away from over buying unnecessary grocery items. This will also cut back on your food waste. Meal plans and prepping your meals are also a good way to stay health conscious, and portion food, making your purchases go further.
17. Pick a bank with perks such as no ATM fees, no overdraft fees, higher interest on saving accounts, etc. Finding a bank that fits your needs will help you save money in the long run. Credit unions are a good opinion.

If you feel as if you saved enough from these tips and want to start the home loan application process, contact Steve Gilbert with Seattle Mortgage Brokers and get an application submitted today!

*This article does not represent legal interpretation or advice. This is not a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet LTV requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines, and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over life of loan. Reduction in payments may reflect longer loan term. Terms of the loan may be subject to payment of points and fees by the applicant.